Solutions are the key to digital currency moving forward. Compass Mining brokerage has announced a new plan to be a part of that innovation.
A broker of Bitcoin (BTC) mining machines and hosting services, the company has begun to realize the need for repairs of the hardware and fees related.
Though it’s not frequent, a sudden crash can be devastating. Compass Mining services mainly retail clients who have multiple machines and need fast repair. A few days of downtime could mean thousands of dollars lost.
What Bitcoin Miners Protection Insurance Covers
The Bitcoin Miner Protection Insurance will cover fire, government action, and the most important — electrical damage.
Price of the new insurance for crypto mining machines is expected to be a minimal cost. Such hardware typically does not malfunction, but as with all insurance it’s better to be caught with it than without it.
Compass Chief Strategy Officer Jameson Nunney says crypto-mining is an industry that is young. The new innovation of an insurance plan he believes “should be considered a financial primitive.”
Compass Mining Insurance Only in 4 States
The new product will not be available to all miners in the US. Only 4 will be offered this Bitcoin Miner protection service for now — South Carolina, Texas, Oklahoma, and Nebraska. And it will only be available to Compass Mining’s partner sites.
A great stride forward for the company, the insurance is also positive news for the cryptocurrency world.
Growth of Crypto-Mining in 2023
Such a protection gives investors more security and comfort in buying computers to mine crypto-tokens. And the increased production is much needed as some expect cryptocurrency use to grow tremendously in 2023, after government regulation.
The growth of Compass Mining is also progress for the company. CEO and Co-Founder, Whit Gibbs, resigned in June of this year. He cited setbacks and delays related to thousands of machines being held in Russia as his reason for vacating his position.